Fundamental Overview
Gold got a boost recently on renewed tensions in the Middle East. In fact, on Tuesday, Israel struck Beirut (Lebanon) targeting the Hezbollah commander that launched a recent missile attack against Israel. Just some hours later, Israel managed to kill the top Hamas leader in Teheran (Iran).
Moreover, we had the FOMC rate decision yesterday and as expected it was a dovish one. Fed Chair Powell hinted to a September rate cut and didn’t even close the door for “several” rate cuts before the end of the year. Eventually, gold got another boost late in the day as we got the news that Iran ordered a strike against Israel.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold managed to break above the 2430 resistance again following some renewed tensions in the Middle East. The buyers will likely have some more conviction now and will likely increase their bullish bets into new all-time highs. The sellers, on the other hand, will want to see the price falling back below the 2430 level to pile in for a drop into the 2277 support.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price broke above the downward trendline and extended the rally into new highs as the buyers piled in more aggressively. We should see more buying pressure coming into the market at these levels but if we were to see the price falling back below the 2430 level, then we can expect the drop to extend into the minor upward trendline where the buyers will have another dip-buying opportunity. The sellers, on the other hand, will look to pile in at the break below the 2430 level and the break below the upward trendline targeting the 2277 support.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have another minor trendline defining the current bullish momentum. The buyers will likely lean on the trendline with a defined risk below the 2430 level to position for a rally into a new all-time high. The sellers, on the other hand, will want to see the price breaking below those key levels to position for a drop into the next trendline. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claims figures and the US ISM Manufacturing PMI. Tomorrow, we conclude the week with the US NFP report.